Business Procedures and Legal Requirements

Business Constitution and Operation Procedures

Constitution Procedures

Constitution procedures are those that give a company its legal personality, making it capable of holding rights and obligations with full responsibility.

Steps of Implementation

Steps of implementation are those that a company must take once it has acquired legal personality, and without which it cannot start business or operations. These steps differ for individual entrepreneurs, community property or civil society, and corporations.

The Order

An order is a request made by a client to a provider for a product or service, with previously established characteristics, within a fixed period, and at an agreed-upon price and conditions.

The Delivery Note

A delivery note is a document that accompanies the delivery of goods, indicating their nature and quantity, along with the delivery details and the names of the buyer and seller.

The Invoice

An invoice is a document that lawfully credits a service or sale of goods.

Corporation

A corporation is a company aimed at achieving one or more acts of trade or, in general, an activity subject to commercial law. It differs from a civil society contract.

Registration in the Census

Registration in the census is the document through which management communicates the start and type of business activity. It includes information on the characteristics of the activity, local tax, and the chosen mode.

IAE (Tax on Economic Activities)

IAE is a local tax levied on the exercise of business, professional, or artistic activities.

CIF (Tax Identification Code)

CIF is used to identify the company for tax purposes.

ITP (Transfer Tax and Stamp Duty)

ITP refers to the Transfer Tax and Stamp Duty.

Diligence and Legalization of Required Books

Employers must keep records appropriate to their activity, including a journal, inventory, and accounts, and must maintain a set of ledgers.

Company Registration with Social Security (SS)

Before starting activities, all employers who will hire staff must register as such in the General Scheme of Social Security.

Registration of the Entrepreneur

All individuals who register with the IAE to pursue a trade, business, or service are required to enroll in the special scheme for self-employed individuals.

Registration of Workers

Once the company is registered, the next step is the affiliation of workers. This is mandatory for all persons included in the scope of Social Security.

Acquisition and Sealing of the Guestbook

Employers must purchase and seal the guestbook at the provincial labor ministry.

Purchase or Lease of Premises

For the development of the planned activity, it is necessary to purchase land or premises. It should be verified that the urban classification of these will allow the intended activity, ensuring there are no obstacles for obtaining the appropriate municipal licenses.

Building Permit

If work needs to be done in the premises where the business will operate, a building permit must be requested from the council.

Opening License

This license authorizes the use of the premises and facilities, confirming that they are duly completed and ready, according to planning conditions, and environmental and security requirements for their specific purpose.

Notification of Opening

When opening a new workplace or resuming business after significant changes, the provincial labor authority or the competent body of the autonomous region must be notified within thirty days following the start of activities.

BoE (Official State Gazette)

A BoE credit is a formal and complete title by which a person (drawer) instructs another (drawee) to pay a certain amount of money, at a specified time and place, to the order of the principal or a third party (borrower), with all signatories being jointly obliged.